What makes Samsung one of the world's leading companies?

Résumé du document

The Samsung group, a multinational enterprise founded by Lee Byung-Chul in 1938 in Daegu, is one of the largest multi-billion dollar corporations in the world. It is composed of numerous multinational businesses, all united under the Samsung brand. The South Korean conglomerate operates in various fields like electronics, heavy industry, engineering, constructions, chemicals and financial services . The three first businesses form the backbone of the Samsung group. Samsung's name comes from the meaning of the Korean word "Samsung" which is "tristar" or "three stars" . Today, the Samsung brand is the most famous Korean brand in the world.

Samsung group is South Korea's largest company and exporter and the 5th largest transnational corporation in the world. The group is currently headed by Lee Kun-Hee who is the third CEO of this group. Samsung exports represent more than 20 percent of the country's total exports .

The philosophy of the company is to "devote [its] human resources and technology to create superior products and services, thereby contributing to a better global society."
We can ask what makes Samsung one of the world's leading companies.

In order to understand the international policy of the global brand, we will focus on the international facts of the company. Then we will present the electronics and mobile phone industries. In a third part, we will analyze Samsung's strategy. Finally, we will determine the marketing strategy and marketing mix developed by Samsung.

The company makes sure that it launches its products simultaneously all over the world. Many Koreans consider the Samsung group as a symbol of national success. Koreans view the brand's international success and businesses as a model worth emulating.

Throughout the 1970s, Samsung, which was already a major manufacturer in the domestic market, began to export its products. In November 1976, Samsung Corporation was awarded a $300 million export prize and with this, Samsung Electronics started to export color televisions throughout Asia, Europe and North America. Thereby, in 1978, the company achieved $100 million in exports.

In the late 1970s and early 1980s, the company started to diversify its activities intensively to achieve global growth. The company which only produced semiconductors for the domestic market emerged as the world leader in semiconductor products with the success of the following model - 64K DRAM: Dynamic Random Access Memory, in December 1983.

The early 1990s presented tremendous challenges for high-tech businesses. Business began to flow between countries and companies and thereby Samsung developed its "New Management" policy. It started to build new factories abroad and in July 1992, Samsung Electronics built color TV factories in Bellingham, England, and in October, it extended its manufacturing activities to China.

In 1995, regional headquarters were based in the USA, Europe and China; a year later, three semiconductor factories were built in Austin, Texas, USA, and one in Mexico.

The "New Management" of Samsung is not only about quality products but also about quality people. The human resources development center organizes "customer service training sessions" for employees all over the world. In the 1990s, the company wanted to improve its image, the reason behind Samsung's participation in cultural and sporting events. In view of this positive participation, its chairman, Kun-Hee Lee, was selected as a member of the International Olympic Committee (IOC) in July 1996.

1997 was a dark year for nearly every Korean company because of a general collapse. Samsung was not an exception. The company decided to sell 10 business units to overseas companies for $1.5 billion. In 2004, Samsung group recorded a $50 billion in exports revenue, 21% of entire exports revenue in Korea.

Tags: Samsung marketing strategy, Samsung product portfolio, Samsung Electronics, Globalization degree of Samsung

Extraits

[...] In 2006, SAMSUNG won 80 awards, firmly establishing SAMSUNG as a leading company[94]. However we can ask ourselves if is non imitable competitive advantage since in 2006 several small and big companies followed SAMSUNG's footsteps by hiring design houses and consultancies to improve their product designs. - Service Service corresponds to all the activities aiming to increase or maintain the value of the product. SAMSUNG is very progressive in its thinking and all business decisions are made based on what is best for the customers[95]. [...]

[...] [131] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. 74-76 [132] Capital, (2008), Les secrets des champions du téléphone mobile, 198, p [133] Capital, (2008), Les secrets des champions du téléphone mobile, 198, p [134] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. 74-76 [135] Ibid. [136] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. 76-80 [137] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. 70-74 [138] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. [...]

[...] Mobile phone that combines: agenda, USB, notebook and phone. Basic: simple products, easy to use. SAMSUNG's segmentation for the mobile phones o Segmentation according to the demand[128] [129] SAMSUNG segmentation criteria SAMSUNG operates the segmentation according the consumers' lifestyle. It is divided in four groups: Hype&Fashion: consumers attracted by the most fashionable product and who want to lead the trend. Technovore: consumers who always want the newest technology. Functionality: consumers looking for a practical device with various functionalities (phone, MP3, notebook). [...]

[...] We know that the positioning is closely linked to the targeting policy of the company. Since the targeting policy is standardized: “single target no matter the country”, so is the positioning “undifferentiated positioning”. - Brand strategy Since 1999 SAMSUNG Electronics practices a global brand strategy[144]. In order to enhance the “brand familiarity”, SAMSUNG uses: “Internet advertising on heavily visited sites, product placement in movies such as the The Matrix: Reloaded, and sponsorship of popular sporting events such as the Olympics”[145]. [...]

[...] 66-68 [141] Capital, (2008), Les secrets des champions du téléphone mobile, 198, pp. 66-68 [142] AMIO A., (2003), Business world, Mobile phone specifically for women [143] SAMSUNG, http://www.SAMSUNG.com/us/aboutSAMSUNG/companyprofile/annualreport/CompanyPr ofile_ElectronicsAnnual2006.html, Full report, Business overview, website consulted on the 03/31/08 [144] LEV-RAM M. (2007), Business SAMSUNG's Indentity Crisis, Vol.8, Iss p.60 [145] Brandchannel.com, [146] #$EFGIbc}óéßÒį—‚—j¯YC+Y/jh]`&h]`&5?OJ[147]QJ[148]U ^J[149]mHnHu *h9 h]`&5?OJ[150]QJ[151]^J[152]mHnHsH u h]`&h€Y·OJ[153]QJ[154]^J[155]mH sH .h]`&h€Y·5?CJ0OJ[156]QJ[157]\?^J[158]aJ0mH sH (h95?CJ0OJ[159]QJ[160]\?^J[161]aJ0mH sH .h]`&h]`&5?CJ0OJ[162]QJ[163]\?^J[164]aJ0mH sH (h]`&h]`&CJ$OJ[165]QJ[166]^J[167]aJ$mH sH h]`&OJ[168]QJ[169]^J[170]mH sH http://www.brandchannel.com/features_effect.asp?pf_id=168, website consulted on the 03/30/08 [171] Euromonitor International, (2005), Global company profile, SAMSUNG Electronics Co Ltd Consumer Electronics World [172] MCKENZIE D. [...]